Circling the Drive: Hero MotoCorp gears up for Hero FinCorp IPO in 2024. Picks Eight Investment Banks in Tow
Hero FinCorp, a prominent non-banking financial company founded in 1991, specializes in delivering financial solutions to retail and corporate customers. Their diverse portfolio encompasses two-wheeler financing, term loans, working capital loans, loan against property, bill discounting, and leasing.
Hero FinCorp IPO- Hero MotoCorp Sets Wheels for a mega 2024 IPO:
The financial world is buzzing with news of Hero FinCorp’s IPO. A consortium of esteemed financial advisors, including JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC, has been selected for this significant occasion, as reported by Moneycontrol.
As reported by Moneycontrol, the proposed Hero FinCorp IPO size is targeted at around Rs 4,000 crores, though this figure may vary depending on market conditions and investor strategies. Additionally, there’s potential for more banks to be involved in the deal in the future.
As per the Hero FinCorp Annual Report FY2022-23, the promoters held 79.54% stake in the company, including 41.19% held by Hero MotoCorp Ltd.
As per media reports, in February 2022, Hero FinCorp successfully secured Rs 2,000 crores in growth capital with contributions from Apollo Management and Hero MotoCorp. Apollo Global Management allocated Rs 937 crore through its Hybrid Value Fund, while Hero MotoCorp infused Rs 700 crore into the company.
During this capital infusion, Abhimanyu Munjal, the Joint Managing Director and Chief Executive of Hero FinCorp, expressed optimism, stating, “This fresh capital injection will drive our growth towards achieving $10 billion in assets, enabling us to serve over 15 million customers by FY25.”
Hero FinCorp’s financial performance demonstrates an impressive trajectory. In fiscal year 2023, they reported a profit of Rs 479.95 crores, marking a remarkable turnaround from a loss of Rs 191.90 crores in the preceding fiscal year. Their total revenue from operations surged to Rs 6,447.55 crores compared to Rs 4,797.66 crores in the prior year. (Consolidated figures)
Additionally, their net NPAs decreased to 2.79 percent from 4.63 percent.
As of March 31, Hero Fincorp’s AUM at enterprise level stood at Rs 41,497 crores, Hero FinCorp’s loan book stood at approximately Rs 36,213 crores. Hero FinCorp also has a dedicated home finance arm, Hero Housing Finance, as a wholly-owned subsidiary.
Hero Fincorp Unlisted Shares Shift into High Gear, Jumping 70% Amid IPO Buzz!
Hero FinCorp Unlisted Shares have been making waves in the financial market, as this subsidiary of Hero MotoCorp Limited prepares for an eagerly awaited IPO. Over the past ten months, these unlisted shares have demonstrated remarkable growth, surging by an impressive 70%. In January 2023, these shares were valued at around Rs. 700 each, but they have since skyrocketed, now commanding a price exceeding Rs. 1200 per share. This remarkable surge in share value aligns with the buzz surrounding Hero FinCorp’s impending initial public offering.
Notably, the company has not only captured investor attention through its stock performance but has also posted a remarkable turnaround in its financial results for the fiscal year 2022-23. Hero FinCorp Unlisted Shares have clearly become a focal point of interest in the financial world as investors eagerly anticipate their transition into the public market.
Hero Fincorp Unlisted Share Price Chart
Hero FinCorp: Key Ratios at Glance for FY 2022-23
- Disbursements: Rs. 25,837 Crs
- GNPA to Loan Assets: 5.4%
- Profit/Loss: Rs. 479.95 Crs (Conso.)
- Return on Equity: 10.5%
- Return on Assets: 1.3%
- Capital Adequacy Ratio: 20.6%
- Debt Equity Ratio: 6.3%
- EPS: 35.9 Rs
- Book Value: Rs. 415
- Hero Fincorp Unlisted Share Price: Rs. 1200
- P/E (As per Hero Fincorp Unlisted Share Price): ~ 33x
- Price/ Book Value (As per Hero Fincorp Unlisted Share Price): 2.89x
For more details on Hero Fincorp Unlisted Shares, visit our dedicated page here.
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